Why Energy Efficiency is Important 

Energy efficiency is one of the quickest and cheapest ways to increase the amount of energy available for use. In contrast, building new power plants is expensive and requires years of paperwork before groundbreaking can happen. U.S. energy intensity (U.S. energy consumption per dollar of real gross domestic product) decreased by 46% from 1975 to 2005, mostly due to increasingly efficient technologies. According to a report by the Rocky Mountain Institute, the U.S. would have needed to consume 2.1 times as much oil during this period if not for this increase in energy efficiency.

Energy efficiency measures add up to real dollars saved. According to the Department of Energy’s Energy Efficiency and Renewable Energy program, Americans saved $7 billion on residential energy bills in 2004 from energy saving measures and by building energy efficient homes. Energy efficiency is especially vital to Alaskans, many of whom must contend with high fuel costs and extreme winter weather. Reduced greenhouse gas emissions and industrial pollution also result from increased energy efficiency. As of 2000, electricity production was responsible for 62.6% of U.S. sulfur dioxide emissions (acid rain), 21.1% of U.S. nitrous oxides emissions (urban smog), and 40% of U.S. carbon emissions (greenhouse gas). An additional 56% of nitrous oxide emissions and 34% of carbon emissions are a by-product of transportation. Adopting energy efficiency measures help reduce these pollutants and save money. For example, the American Council for an Energy Efficient Economy (ACEEE) estimates that from 2006-2020, extended energy efficiency tax incentives could reduce consumer energy bills by $27 billion, prevent more than 51 million metric tons of carbon emissions, and reduce peak electric demand by more than 6,000 MW (equivalent to the capacity of twelve 500 MW coal plants).

Numerous other benefits of energy efficiency are rarely discussed. These include the psychological benefits of using natural lighting sources, including making a home or office more comfortable, increasing worker productivity, or making a retail store more appealing to customers. Other benefits include healthier, better-ventilated buildings, food that stays fresher in more efficient refrigerators, and motors that run quieter. A study by the Rocky Mountain Institute showed that in efficient buildings, labor productivity rises by 6-16% due to the office being quieter, more comfortable, and with better air and lighting.

Sources:
Energy Information Administration
Rocky Mountain Institute
Environmental Protection Agency